If a US company (LLC) wants to make capital investment overseas; does owner gets to write it off as expense?
I plan to start a business overseas (India) that will ultimately bring profits back to US. However, I would like to take tax advantages, if any available, while making this investment. Is there any way I can get write off investment made in this manner? Indian company can be upto 50% owned by US registered company. A: On your financial statements, you have to show your overseas investments on the asset side of the balance sheet, and these entries don’t enter into taxable calculations. It’s like buying a car. It’s not income and it’s not a deduction, all you did is spend your money. Income generation overseas is “foreign earned income” and it is certainly taxable. Foreign earned income falls under a different set of rules and I’ve never studied them in depth, but they are taxable for both companies and people. Any taxes that you pay in India are deductible, naturally. Since you’re running a company, everything you spend in day-to-day operations is deductible from revenues. That’s the ea
